|Bid||3.60 x 0|
|Ask||3.61 x 0|
|Day's range||3.59 - 3.65|
|52-week range||2.57 - 4.07|
|PE ratio (TTM)||16.64|
|Earnings date||20 Aug. 2018 - 24 Aug. 2018|
|Forward dividend & yield||0.16 (4.34%)|
|1y target est||2.88|
The share prices of the big miners are under pressure today but Rio Tinto Limited (ASX:RIO) could be particularly vulnerable as Credit Suisse warns that the recent sharp rise in aluminium prices is about to be undone.
has defended the 50 per cent takeover premium it has offered for a junior mining company developing a big underground zinc, lead and silver deposit in the US. Graham Kerr said that South32’s $1.3bn cash offer for the 83 per of Arizona Mining it does not already own would be justified by further drilling at the Hermosa project.
Global diversified miner South32 Ltd. agreed to acquire Arizona Mining Inc. for $1.3 billion to add a flagship silver-lead-zinc project in the U.S. and said it will remain on the M&A hunt as deal-making returns to the sector. Perth-based South32 -- spun out of BHP Billiton Ltd. in 2015 -- will pay C$6.20 ($4.70) a share for the 83 percent of the company that it doesn’t already own, according to a filling Monday. Arizona directors unanimously recommended the deal that’s priced at a 50 percent premium to Friday’s close.
South32 Limited (ASX:S32) (JSE:S32) (LSE:S32) (SOUHY) (South32) and Arizona Mining Inc. (AZ.TO) (Arizona Mining) announced today that they have entered into an agreement for South32 to acquire the remaining 83 per cent of issued and outstanding shares of Arizona Mining via a plan of arrangement, representing a fully funded, all cash offer of US$1.3 billion1 (C$1.8 billion). The offer price of C$6.20 per share represents a 50 per cent premium to the closing price on 15 June and implies a total equity value for Arizona Mining of US$1.6 billion1 (C$2.1 billion). Directors and officers of Arizona Mining, who own 34 per cent of the common shares on issue, have entered into voting support agreements and the directors of Arizona Mining entitled to vote, have unanimously recommended to their shareholders that they vote in favour of the transaction.
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Have Markets Been Harsh on Alcoa This Year? In this article, we’ll take a look at the major risks facing Alcoa (AA) and other aluminum producers this year. As President Donald Trump looks inclined to impose tariffs on aluminum imports, we could see an increase in US aluminum production.
As we discussed in the preceding part of this series, US aluminum production has been stagnant at best, despite the nearly 50% rise in aluminum prices when compared with the 1Q16 lows. US aluminum production has been in a falling trend for quite some time now, and current production levels are hovering near multiyear lows. In this article, we’ll see why US aluminum production doesn’t look to be coming back online in a big way, despite higher aluminum prices.
In this article, we’ll see how markets are valuing Alcoa (AA). Specifically, we’ll look at the forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, which is the preferred valuation metric for aluminum producers. Alcoa is valued at an enterprise value of 4.5x its 2018 consensus EBITDA and at 4.8x its consensus 2019 EBITDA.